Product Requirements Document (PRD) for Open Cap Stack - Fund Manager V1.0

[urbantech]

Product Name: Open Cap Stack
Version: 1.0
Date: July 2024
Prepared by: Toby Morning

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1. Overview

1.1 Product Vision

The Open Cap Stack aims to provide a comprehensive, open-source platform for fund managers to streamline fund management processes. This includes tools for fundraising, investor relations, investment tracking, compliance, and reporting, ensuring seamless operations and optimal performance of funds and SPVs.

1.2 Goals and Objectives

• Fundraising Tools: Provide tools to help fund managers raise capital efficiently.
• Investor Relations Management: Enable effective management of relationships with investors.
• Investment Tracking and Management: Facilitate comprehensive tracking and management of investments.
• Back Office Support: Offer comprehensive support for legal, tax, and compliance matters.
• Deal Flow Management: Provide tools for sourcing, evaluating, and tracking investment opportunities.
• Cap Table Management: Maintain accurate cap tables for SPVs and fund investments.
• Fund Administration: Ensure smooth operations and regulatory compliance through comprehensive administration services.
• Investor Portal: Provide investors with access to reports, updates, and communications.
• Performance Tracking: Tools to track the performance of investments.
• Compliance and Tax Services: Support for navigating regulatory requirements and ensuring proper tax filings.

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2. Stakeholders

2.1 Primary Stakeholders

• Fund Managers: Use the platform to manage funds, SPVs, and relationships with investors.
• Investors: Access reports, updates, and communications through the investor portal.

2.2 Secondary Stakeholders

• Back Office Teams: Utilize tools for legal, tax, and compliance support.
• Compliance Officers: Monitor and ensure regulatory compliance.

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3. Functional Requirements

3.1 Core Features

Fundraising Tools

• User Story: As a Fund Manager, I want tools to help me raise capital from investors so that I can easily secure funding for my funds and SPVs.
• Features:
  • Fundraising campaign management.
  • Investor outreach and tracking.
  • Fundraising analytics and reports.

Investor Relations Management

• User Story: As a Fund Manager, I want to manage relationships with my investors, providing them with regular updates and reports so that they stay informed about their investments.
• Features:
  • Investor contact management.
  • Communication tools (email, notifications).
  • Report generation and distribution.

Investment Tracking and Management

• User Story: As a Fund Manager, I want to track and manage my investments, including cap table management and performance tracking, so that I can make informed decisions and optimize returns.
• Features:
  • Investment performance tracking.
  • Cap table management.
  • Real-time investment data analytics.

Back Office Support

• User Story: As a Fund Manager, I want comprehensive back office support for legal, tax, and compliance matters so that I can focus on managing my fund and investments.
• Features:
  • Legal document management.
  • Tax filing and management.
  • Compliance monitoring and reporting.

Deal Flow Management

• User Story: As a Fund Manager, I want to source, evaluate, and track investment opportunities so that I can efficiently manage my investment pipeline.
• Features:
  • Deal sourcing and evaluation tools.
  • Deal pipeline tracking.
  • Due diligence management.

Cap Table Management

• User Story: As a Fund Manager, I want to maintain accurate cap tables for my SPVs and fund investments so that I can keep track of ownership and investment details.
• Features:
  • Cap table creation and management.
  • Ownership tracking.
  • Equity distribution visualization.

Fund Administration

• User Story: As a Fund Manager, I want comprehensive fund administration services, including accounting, reporting, and compliance, so that I can ensure smooth operations and regulatory compliance.
• Features:
  • Fund accounting tools.
  • Financial reporting.
  • Compliance checks and validations.

Investor Portal

• User Story: As an Investor, I want access to a portal where I can view reports, updates, and communications from fund managers so that I stay informed about my investments.
• Features:
  • Secure investor login.
  • Access to investment reports and updates.
  • Communication history with fund managers.

Performance Tracking

• User Story: As a Fund Manager, I want tools to track the performance of my investments, including valuations and returns, so that I can assess and report on the fund’s performance.
• Features:
  • Investment performance dashboards.
  • Valuation tools.
  • Return on investment (ROI) tracking.

Compliance and Tax Services

• User Story: As a Fund Manager, I want support for compliance and tax services so that I can navigate regulatory requirements and ensure proper tax filings.
• Features:
  • Regulatory compliance monitoring.
  • Tax calculation and filing support.
  • Compliance documentation management.

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4. Data Model for Fund Management Features

4.1 Fund

• Attributes:
  • FundID: Unique identifier for the fund.
  • Name: Name of the fund.
  • CreationDate: Date when the fund was created.
  • Status: Current status of the fund (e.g., Active, Closed).
  • TotalCapitalRaised: Total capital raised by the fund.
  • InvestedCapital: Capital that has been invested.
  • RemainingCapital: Capital that is yet to be invested.
  • ComplianceStatus: Compliance status of the fund.
• Relationships:
  • Created by: Fund Managers.
  • Invested in: SPVs.
  • Manages: Investments.
  • Provides reports to: Investors.

4.2 Investor

• Attributes:
  • InvestorID: Unique identifier for the investor.
  • Name: Investor's full name.
  • Email: Investor's email address.
  • InvestmentOverview: Summary of investments.
  • DocumentRepository: Storage for investment-related documents.
  • InvestmentTracker: Tool for tracking investment performance.
• Relationships:
  • Invests in: Funds, SPVs.
  • Receives reports from: Funds.

4.3 Fund Investment

• Attributes:
  • InvestmentID: Unique identifier for the investment.
  • FundID: Identifier of the fund.
  • SPVID: Identifier of the SPV.
  • Amount: Amount of the investment.
  • Date: Date of the investment.
  • OwnershipPercentage: Percentage of ownership the investment represents.
  • CurrentValue: Current value of the investment.
• Relationships:
  • Made by: Funds.
  • Invested in: SPVs.

4.4 Fund Financial Report

• Attributes:
  • ReportID: Unique identifier for the financial report.
  • FundID: Identifier of the fund.
  • Type: Type of financial report (e.g., Balance Sheet, Income Statement, Cash Flow Statement).
  • Data: Financial data contained in the report.
  • Timestamp: Date and time when the report was generated.
• Relationships:
  • Generated by: Funds.
  • Accessible to: Investors.

4.5 Compliance Check

• Attributes:
  • CheckID: Unique identifier for the compliance check.
  • FundID: Identifier of the fund.
  • RegulationType: Type of regulation being checked.
  • Status: Status of the compliance check (e.g., Compliant, Non-Compliant).
  • Details: Additional details about the compliance check.
  • Timestamp: Date and time of the compliance check.
• Relationships:
  • Conducted for: Funds.
  • Monitored by: Admins.

4.6 Updated Data Model JSON Representation

{
  "User": {
    "attributes": {
      "UserID": "Unique identifier for the user",
      "Name": "User's full name",
      "Email": "User's email address",
      "UserType": "Type of user (Admin, Company, Investor, Employee, Fund Manager)",
      "UserRoles": "Roles assigned to the user",
      "NotificationSettings": "User's notification preferences"
    },
    "relationships": "Has notifications and activity logs"
  },
  "Company": {
    "attributes": {
      "CompanyID": "Unique identifier for the company",
      "Name": "Company's legal name",
      "Address": "Company's registered address",
      "FinancialReports": "Links to financial reports",
      "CompanyDocuments": "Links to company documents"
    },
    "relationships": "Invites investors and employees, communicates with investors, creates SPVs"
  },
  "Investor": {
    "attributes": {
      "InvestorID": "Unique identifier for the investor",
      "Name": "Investor's full name",
      "Email": "Investor's email address",
      "InvestmentOverview": "Summary of investments",
      "DocumentRepository": "Storage for investment-related documents",
      "InvestmentTracker": "Tool for tracking investment performance"
    },
    "relationships": "Communicates with companies, invests in Funds and SPVs"
  },
  "FundManager": {
    "attributes": {
      "FundManagerID": "Unique identifier for the fund manager",
      "Name": "Fund manager's full name",
      "Email": "Fund manager's email address",
      "ManagedFunds": "List of funds managed by the user"
    },
    "relationships": "Manages Funds"
  },
  "Fund": {
    "attributes": {
      "FundID": "

Unique identifier for the fund",
      "Name": "Name of the fund",
      "CreationDate": "Date when the fund was created",
      "Status": "Current status of the fund (e.g., Active, Closed)",
      "TotalCapitalRaised": "Total capital raised by the fund",
      "InvestedCapital": "Capital that has been invested",
      "RemainingCapital": "Capital that is yet to be invested",
      "ComplianceStatus": "Compliance status of the fund"
    },
    "relationships": "Created by Fund Managers, invests in SPVs, manages investments, provides reports to investors"
  },
  "FundInvestment": {
    "attributes": {
      "InvestmentID": "Unique identifier for the investment",
      "FundID": "Identifier of the fund",
      "SPVID": "Identifier of the SPV",
      "Amount": "Amount of the investment",
      "Date": "Date of the investment",
      "OwnershipPercentage": "Percentage of ownership the investment represents",
      "CurrentValue": "Current value of the investment"
    },
    "relationships": "Made by Funds, invested in SPVs"
  },
  "FundFinancialReport": {
    "attributes": {
      "ReportID": "Unique identifier for the financial report",
      "FundID": "Identifier of the fund",
      "Type": "Type of financial report (e.g., Balance Sheet, Income Statement, Cash Flow Statement)",
      "Data": "Financial data contained in the report",
      "Timestamp": "Date and time when the report was generated"
    },
    "relationships": "Generated by Funds, accessible to investors"
  },
  "SPV": {
    "attributes": {
      "SPVID": "Unique identifier for the SPV",
      "Name": "Name of the SPV",
      "Purpose": "Purpose of the SPV",
      "CreationDate": "Date when the SPV was created",
      "Status": "Current status of the SPV (e.g., Active, Inactive)",
      "ParentCompanyID": "Identifier of the parent company that created the SPV",
      "ComplianceStatus": "Compliance status of the SPV (e.g., Compliant, Non-Compliant)"
    },
    "relationships": "Created by a company, managed by an admin, invested by investors, contains assets, generates financial reports"
  },
  "SPVFinancialReport": {
    "attributes": {
      "ReportID": "Unique identifier for the financial report",
      "SPVID": "Identifier of the SPV the report is related to",
      "Type": "Type of financial report (e.g., Balance Sheet, Income Statement, Cash Flow Statement)",
      "Data": "Financial data contained in the report",
      "Timestamp": "Date and time when the report was generated"
    },
    "relationships": "Generated by SPVs, accessible to investors and companies"
  },
  "ComplianceCheck": {
    "attributes": {
      "CheckID": "Unique identifier for the compliance check",
      "FundID": "Identifier of the fund",
      "SPVID": "Identifier of the SPV being checked",
      "RegulationType": "Type of regulation being checked",
      "Status": "Status of the compliance check (e.g., Compliant, Non-Compliant)",
      "Details": "Additional details about the compliance check",
      "Timestamp": "Date and time of the compliance check"
    },
    "relationships": "Conducted for Funds and SPVs, monitored by admins"
  },
  "SPVAsset": {
    "attributes": {
      "AssetID": "Unique identifier for the asset",
      "SPVID": "Identifier of the SPV that owns the asset",
      "Type": "Type of asset (e.g., Real Estate, Financial Instrument)",
      "Value": "Current value of the asset",
      "Description": "Description of the asset",
      "AcquisitionDate": "Date when the asset was acquired"
    },
    "relationships": "Owned by SPVs, managed by users"
  },
  "Dashboard": {
    "attributes": {
      "DashboardID": "Unique identifier for the dashboard",
      "Metrics": "Key metrics displayed on the dashboard (cash burn rate, revenue growth, etc.)"
    },
    "relationships": "Viewed by companies and investors"
  },
  "ComplianceChecker": {
    "attributes": {
      "CheckID": "Unique identifier for the compliance check",
      "RegulationType": "Type of regulation being checked",
      "Status": "Status of compliance (Compliant/Non-Compliant)",
      "Details": "Additional details about the compliance check"
    },
    "relationships": "Used by companies to ensure regulatory compliance"
  },
  "DueDiligenceTask": {
    "attributes": {
      "TaskID": "Unique identifier for the due diligence task",
      "Type": "Type of due diligence task (Background Check, Financial Review, etc.)",
      "Status": "Current status of the task (Pending/Completed/etc.)",
      "Details": "Details about the due diligence task"
    },
    "relationships": "Assigned to companies by investors or regulatory bodies"
  },
  "TransactionLog": {
    "attributes": {
      "LogID": "Unique identifier for the transaction log",
      "TransactionType": "Type of transaction logged",
      "Details": "Details about the transaction",
      "Timestamp": "Time when the transaction occurred"
    },
    "relationships": "Associated with companies and investors for tracking transactions"
  },
  "FinancialModel": {
    "attributes": {
      "ModelID": "Unique identifier for the financial model",
      "Scenario": "Scenario being modeled",
      "Predictions": "Predictions made by the model"
    },
    "relationships": "Used by companies for financial forecasting"
  },
  "ExitStrategy": {
    "attributes": {
      "StrategyID": "Unique identifier for the exit strategy",
      "Type": "Type of exit strategy (Acquisition, IPO, etc.)",
      "Details": "Details about the exit strategy"
    },
    "relationships": "Planned by companies for future exits"
  },
  "ValuationTool": {
    "attributes": {
      "ToolID": "Unique identifier for the valuation tool",
      "Methodology": "Valuation methodology used",
      "Result": "Result of the valuation"
    },
    "relationships": "Used by companies to determine their market value"
  },
  "Workspace": {
    "attributes": {
      "WorkspaceID": "Unique identifier for the workspace",
      "Content": "Content of the workspace",
      "Timestamp": "Last update time of the workspace content"
    },
    "relationships": "Used by companies and investors for collaboration"
  },
  "Synergy": {
    "attributes": {
      "SynergyID": "Unique identifier for the synergy",
      "Type": "Type of synergy (Shared Resource, Potential Merger, etc.)",
      "Details": "Details about the synergy"
    },
    "relationships": "Identified between companies for potential collaboration or merger opportunities"
  }
}

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5. Project Timeline

Phase	Description	Duration
Requirements Gathering	Collect detailed requirements from stakeholders	2 weeks
Design	Create UI/UX designs and system architecture	4 weeks
Development	Implement core and additional features	12 weeks
Testing	Perform unit, integration, and user acceptance testing	4 weeks
Deployment	Deploy to production environment	2 weeks
Post-Launch Support	Monitor and fix any post-launch issues	Ongoing

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6. Risks and Mitigations

Risk	Mitigation Strategy
Data Security Breaches	Implement robust encryption and security measures, regular audits
Compliance with Regulations	Continuous engagement with regulatory bodies and adherence to standards
Integration Challenges	Develop comprehensive API documentation and support
User Adoption	Provide training and support resources, gather feedback for improvements

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7. Appendices

7.1 Glossary

• OCF: Open Cap Table Format
• OCT: Open Cap Table Coalition
• API: Application Programming Interface
• GDPR: General Data Protection Regulation

7.2 References

• Open Cap Table Coalition Website
• GitHub Repository for Open Cap Table Format